Use the Following Information for the Next 5 Questions

question 13

Multiple Choice

Use the following information for the next 5 questions.
(CMA) The accountant for Whirly Manufacturing Inc. gathered the following information for the month of November.
-Using the FIFO method, the equivalent units of production for conversion costs are

• A) 85,600 units
• B) 95,200 units
• C) 98,400 units
• D) 101,600 units

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Definitions:

Underapplied

Refers to a situation where the allocated costs are less than the actual costs incurred.

Factory Overhead

The indirect costs of manufacturing, such as salaries of quality control personnel and depreciation of factory equipment.

Underapplied Overhead

Underapplied overhead occurs when the actual manufacturing overhead costs exceed the applied overhead costs allocated during a specific period.

Applied Overhead

The estimated amount of overhead cost assigned to a specific job or department based on predetermined rates.